The International Securities Exchange (NYSE:ISE) today reported that in November 2007, its options exchange traded a record average daily volume of 4.3 million contracts. The ISE Stock Exchange traded an average daily volume of 52.2 million shares in the same period.
Average daily trading volume for equity and index options contracts increased 70.8% to a record 4.3 million contracts in November as compared to 2.5 million contracts during the same period in 2006. Average daily trading volume in equity options reached a record 4.2 million contracts, an increase of 69.6% over last year, while average daily volume in index options increased 154.9% to 0.1 million contracts. Total equity and index options volume for the month increased 70.8% to 90.1 million contracts from 52.7 million contracts in the same year-ago period.
On a year-to-date basis, average daily trading volume of equity and index options increased 35.1% to 3.2 million contracts traded as compared to 2.4 million contracts traded in the prior year. Total year-to-date equity and index volume through November 2007 increased 35.1% to 741.6 million contracts from 548.8 million contracts in the same period last year.
Equity and Index Options Volume Statistics
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Current Month Year-to-Date
(000s) Nov-07 Nov-06 % Change Nov-07 Nov-06 % Change
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ISE
Average
Daily
Volume 4,288.2 2,510.2 70.8% 3,210.4 2,375.7 35.1%
ISE Total
Volume 90,052.6 52,714.5 70.8% 741,591.9 548,793.5 35.1%
Industry
Average
Daily
Volume 14,800.1 8,806.0 68.1% 11,366.2 8,043.1 41.3%
Market
Share 29.0% 28.5% 0.5 pts 28.2% 29.5% (1.3) pts
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Market
Share:
Customer 29.1% 30.3% (1.2) pts 29.0% 30.1% (1.1) pts
Market
Share:
Firm 26.8% 23.4% 3.4 pts 26.5% 25.5% 1.0 pts
Market
Share:
Market
Maker 29.6% 28.7% 0.9 pts 28.2% 30.3% (2.1) pts
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Equity Options Volume Statistics
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Current Month Year-to-Date
(000s) Nov-07 Nov-06 % Change Nov-07 Nov-06 % Change
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ISE
Average
Daily
Volume 4,199.4 2,475.4 69.6% 3,147.5 2,342.8 34.3%
ISE Total
Volume 88,187.7 51,982.8 69.6% 727,073.6 541,179.3 34.3%
Industry
Average
Daily
Volume 13,476.9 8,020.6 68.0% 10,277.6 7,311.8 40.6%
Market
Share 31.2% 30.9% 0.3 pts 30.6% 32.0% (1.4) pts
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Market
Share:
Customer 31.3% 32.7% (1.4) pts 31.4% 32.4% (1.0) pts
Market
Share:
Firm 29.2% 25.9% 3.3 pts 29.1% 28.3% 0.8 pts
Market
Share:
Market
Maker 31.7% 31.0% 0.7 pts 30.5% 32.9% (2.4) pts
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Index Options Volume Statistics
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Current Month Year-to-Date
(000s) Nov-07 Nov-06 % Change Nov-07 Nov-06 % Change
----------------------------------------------------------------------
ISE
Average
Daily
Volume 88.8 34.8 154.9% 62.8 33.0 90.7%
ISE Total
Volume 1,864.9 731.7 154.9% 14,518.3 7,614.2 90.7%
Industry
Average
Daily
Volume 1,296.6 784.9 65.2% 1,081.6 730.8 48.0%
Market
Share 6.9% 4.4% 2.5 pts 5.8% 4.5% 1.3 pts
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Dividend Trade Activity
Our market share statistics continue to be negatively impacted by trading activity related to dividend trades among certain options market makers. These trades temporarily inflate and distort trading volume and market share when transacted. If the volume from the largest dividend trades were excluded from the data, our market share of equity options for the month of November would increase to 31.7% from 31.2%, an increase of 0.5 market share points.
On a year-to-date basis, our market share would increase to 31.3% from 30.6%, an increase of 0.7 market share points, if the volume from the largest dividend trades were excluded. The exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in our business.
Monthly HighlightsOptions Exchange
- ISE was the largest U.S. equity options exchange in November.
- On November 6, 2007, ISE's Board of Directors formally elected
a new Chairman and Chief Executive Officer, in accordance with
the Company's executive succession plan announced earlier this
year. David Krell, a co-founder of the Company, will retire
from his position as ISE's President and Chief Executive
Officer and will become Chairman effective January 1, 2008.
The Board elected Gary Katz, also a co-founder and currently
ISE's Chief Operating Officer, to serve as the Company's
President and Chief Executive Officer. Mr. Katz will also join
ISE's Board of Directors commensurate with his new position as
Chief Executive Officer.
- On November 6, 2007, ISE's Board of Directors declared that in
the event the merger with Eurex has not closed by December 31,
2007, a quarterly dividend of $0.05 per outstanding share of
its Class A Common Stock will be paid on or about December 31,
2007 to holders of record as of the close of business on
December 24, 2007.
- On November 8, 2007, ISE's options exchange set a new record
daily trading volume of 6,920,132 equity and index options
contracts, surpassing the previous record of 6,532,403
contracts traded on August 16, 2007.
- On November 13, 2007, ISE launched its ISE Open/Close Trade
Profile, the latest offering in its suite of market data
products. ISE Open/Close Trade Profile provides subscribers
with aggregated volume and the number of trades by series for
opening and closing transactions that are executed on ISE's
options exchange. Categorized by customer, firm proprietary or
firm broker/dealer account type, the offering includes over
fifty data fields for all ISE-listed series.
- Open interest in ISE FX Options continues to grow and reached
304,516 contracts on November 30, 2007, surpassing open
interest of 217,295 contracts at the end of October.
- ISE traded more volume than any other options exchange in
1,094 of 1,851 issues in its listings.
ISE Stock Exchange
- An average daily volume of 52.2 million shares traded on the
ISE Stock Exchange in November.
- The ISE Stock Exchange offers opportunities for price
improvement through its non-displayed liquidity pool, MidPoint
Match(SM). Total price improvement in November 2007 was $4.9
million, and price improvement for all displayed market taker
orders that interacted with MidPoint Match was greater than
$0.01 per share.
